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Why Is Entergy (ETR) Down 0.1% Since Last Earnings Report?

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It has been about a month since the last earnings report for Entergy (ETR - Free Report) . Shares have lost about 0.1% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Entergy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Entergy Corp Q1 Earnings Miss Estimates, Down Y/Y

Entergy Corporation reported first-quarter 2019 adjusted earnings of 82 cents per share, which missed the Zacks Consensus Estimate of 94 cents by 12.8%. Moreover, the reported figure decreased by a penny from 83 cents registered in the year-ago quarter.
 
Excluding the effects of special items, the company registered GAAP earnings of $1.32 per share compared with earnings of 73 cents a year ago.
 
Total Revenues
 
In the quarter under review, total revenues came in at $2,609.6 million, which lagged the Zacks Consensus Estimate of $2,670 million by 2.3%. Also, the top line fell 4.2% from the year-ago quarter’s $2,723.9 million.
 
Segment Results

Utility: The segment’s quarterly adjusted earnings came in at $1.20 per share compared with $1.19 in the prior-year quarter.
 
Parent & Other: The segment incurred adjusted loss of 38 cents per share compared with a loss of 36 cents in the prior-year quarter.
 
Entergy Wholesale Commodities (EWC): The segment registered earnings of 50 cents per share on an as-reported basis against a loss of 10 cents registered in the year-ago quarter.
 
Highlights of the Release
 

Operating expenses in the quarter summed $2.33 billion, down 2.6% from $2.39 billion in the year-ago quarter.
 
Interest expenses were $201 million, up 9.9% from $182.9 million in the year-ago quarter.

In the reported quarter, total retail customers served by the company increased 0.3% to nearly 2.9 million.

Financial Highlights

As of Mar 31, 2019, Entergy had cash and cash equivalents of $983.5 million compared with $481 million as on Dec 31, 2018.
 
At the end of the first three months of 2019, the company generated cash from operating activities of $501.2 million, down from $557.4 million in the prior year quarter.
 
Guidance
 
For 2019, Entergy expects operational earnings of $5.10-$5.50 per share. The Zacks Consensus Estimate for the company’s earnings is currently pegged at $5.41, higher than the midpoint of the company’s guided range.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, Entergy has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Entergy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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